Because of recent financial disasters in the news, the board of directors of your company decided that they wanted to ascertain that the organization’s code of ethics was appropriate and in agreement...

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Report
Table of Contents
1.Six Principles of AICPA's CPC………………………………………………3
2.Review of six principles………………………………………………………3
3.Code of conduct………………………………………………………………5
4.Recommendations……………………………………………………………7
5.References:……………………………………………………………………7
1.Six Principles of AICPA's CPC:
The six principles included in AICPA's CPC are as following:
1.
Responsibilities that require that CPAs ca
y out their duties as professionals exercising ethical and moral judgment in all aspects of their activities are present.
2.
Public interest trust is a principle of obligation to behave and demonstrate professionalism and commitment to their trade.
3.
Integrity is to be demonstrated in all aspects of their professional responsibilities with the ultimate purpose of maintaining and
oadening public confidence.
4.
CPAs are to remain independent and avoid conflict of interest situations in all their duties and responsibilities.
5.
They must exercise due care by members and observe standards of ethics and professional technical nature in the continued strive for competence improvement and quality of services.
6.
Scope and nature of services should be limited to those regarding auditing the financial statements, accounting, tax, financial planning, and litigation support services.
2.Review of six principles:
These principles have been incorporated to make sure that CPAs follow a high level of discipline in their profession. They are supposed to report the accounting as it is without favoring any one.
The primary purpose is to make availability of co
ect information to general public and the government and the stake holders of the organization.
The first principle deals with ethical and moral judgment which makes sure that the practitioners at personal level are honest towards their duties. The first principle has nothing to do with organization or public rather it is directed at an individual’s own character and principles in life. The individual who are CPAs should make sure that this principle has to be taken care by themselves. It is very difficult to monitor whether a CPA is ethical and have high moral value. It is a personality trait and repeated reminder of being ethical and moral forces an individual to perform their duties in ethical and moral ways.
The second principle is concerned with public interest. The public believes whatever has been reported by CPAs as it is the only official document which the general public have easy access and they make their opinion about an organization based on the report which has been drafted by an CPA. The public invests their money in an organization with expectation that their investment is safe and will earn them good returns. It is very shocking to lose money...